Infosys Technologies Limited software Solutions Company based in Bangalore India that is described as the Silicon Valley India. Specialists view software decoding as an art to be done by those with high technical training. Activities involved in software development can also be divided and assigned to individuals in different physical locations. This possibility led to the establishment of Infosys Technology Ltd. Mr. N. R. Narayana Muthi and other six individuals left their stable jobs and started Infosys with a seed capital of 1000 dollars. In a speech to students at New York State University in 2007, he says that he had a dream of establishing an excellent software solutions firm.
Initially, they started by getting involved in software development and maintenance of software for small client firms based in the US. This shows that they were one of the first outsourcing companies in India. Instead of having workforce overseas, they carried out all their operations in India and only communicated with clients through a satellite system. One reason was that the company enjoyed an English-speaking workforce. This enabled the firm to overcome the language barrier. The second reason why Infosys was successful was that it had attractive remuneration package that enabled them to acquire the best skilled individuals in the field. This led to innovations and creativity that fuelled its growth. The last reason why Infosys was a success was that it had a 24-hour operation. It was able to make use of the two time zones in the US and India.
The discussed reasons enabled Infosys Technologies to grow from a company that operated from a garage to a multinational with workforce of 1000 strong workforce and worth twelve million dollars. It moved from elementary software development and maintenance to high-end solutions that cover different sectors. Such sectors include banking, insurance, transport, and retail. Some of the fortune 500 companies that are clients of Infosys Technologies are Apple, Nestle, Boeing, and Toshiba.
Problems faced by Narayana Muthi at Infosys Technologies and Causes of the problems.
According to Ribeiro, there are several factors things that have made Infosys market in the US to reduce. One of the major elements that have contributed to the slump in growth has been the emergence of high competition from other software firms. One of these companies is Tata Consultancy Services (TCS). According to Seeking Alpha.com, Tata Consultancy Services has overtaken Infosys and is now the largest software company in India.
The strategy of multiple empowerments of managers has also led to underperformances. Multiple responsibilities may reduce specialization leading to laxity in the sales department. A manager who is engaged in many activities is likely to be overwhelmed causing his productivity to reduce.
Infosys Technologies has also lagged behind its competitors in emerging businesses such as testing services, infra management and business process outsourcing. This has led to reduced revenue due to the absence of sales in these emerging markets. According to The Economic Times, reduced revenue has led a decrease in the market share price of the firm’s stock. This has significantly reduced confidence in the firm. Multinationals have realized the benefits in delivery of offshore services and have set up shop in India. Such firms include IBM and Cap Gemini SA. They are now competing with Infosys for both customers and workers. This is by offering higher wages to workers and lower prices to customers.
Measures that must be taken to Achieve Planned Growth in Sales
One way to increase sales has been to introduce a risk mitigation system that ensures that the firm does not depend largely on one customer, country, employee, and technology. This has helped Infosys to diversify its market to more countries rather than its traditional market in The US. This has helped to increase its revenues, profits and has enabled Infosys to compete effectively in the software market.
According to the Development Dimensions International, another way for Infosys Technologies to improve its sales is to build relationships with its customers on a strategic scale. This will enable it to create services that are more specific and have complex solutions that are only experienced by the customer. This will be realized by restructuring the talent management strategy. By collaborating with DDI, Infosys has succeeded in improving problem solving, presentation skills and communication skills in the sales department. This means that there will be an upgrade in sales yield, increased revenues, and diversification of services.
Chatterjee also says that another way to improve its sales is through the implementation of a customer relationship system called Customer Information Management by All (CIMBA). The main purpose of this system is to improve communication between Infosys Technologies and its customers. The CIMBA system involves integrating the sales system and the delivery system. The payoffs of the CIMBA system would be more interaction with clients, reduction of risk and would enable Infosys to increase its revenues. CIMBA would also enable the management to have a more clear view of the activities of the company compared to other systems such as CRMX. The company will also be able to improve its forecasting.
References
Spiro, R. (2010). Book Management of a Sales Force, 12th edition,. Columbus: McGraw Hill Irwin. ISBN 978-0-07-352977-6.
